Renault Partners With Geely To Form Internal-Combustion JV

Renault ADR RNLSY and Chinese automotive company Geely signed an agreement to form a new global company to develop, produce and supply advanced hybrid and low-emission powertrains.
Under the framework agreement, Geely and Renault Group will hold respective 50-50 equity stakes in the new company.
The new company will be a standalone global supplier of propulsion system solutions, producing next-generation hybrid propulsion systems and developing carbon-free and low-emission technologies from five global R&D centers.
At launch, the company is expected to supply multiple industrial customers. In future, the partnership could also offer powertrain technologies to third-party car brands.
On completion, the new company will comprise 17 powertrain plants and 5 R&D centers on three continents with around 19,000 employees, supplying 130 countries.
"We'll be able to offer best-in-class powertrain and electrified solutions to multiple OEM brands worldwide, unleashing the market potential for this low emission technology," said CEO Luca de Meo.
The agreement is expected to lead to formal combination in 2023.
Price Action: RNLSY shares closed higher by 4.38% at $6.32 on Monday.
Photo Via Company